ex. Game, Music, Video, Photography

Car imports still face red light after Vietnam refuses to budge on legislation

A five-year-old law has marginalized the majority of local car importers.

Ngày đăng: 24 tháng 9, 2021
Cập nhật: 25 tháng 1, 2023
Lượt xem: 336436625
Nguồn: vnexpress

Business requirements that make it difficult for local traders to import cars from foreign manufacturers are unlikely to be removed despite a recent review.

In 2011, the Ministry of Industry and Trade introduced Circular 20 that included two conditions local firms need to fulfill to import cars.

One of the conditions specifies that Vietnamese firms are required to have either a proxy or a contract with car producers so that they can bring into Vietnam.

However, it’s impossible for most Vietnamese firms to follow as each manufacturer selects only one representative in Vietnam to distribute their vehicles. As a consequence, many firms face a dilemma when an order is made and money is paid, and many have gone bankrupt or changed to another line of business.

New draft about business conditions: nothing new

At present, the Ministry of Industry and Trade has completed a new draft law to boost the development of private businesses. However, it hasn't cut the provisions that involve proxies and contracts for car traders.

The government news portal quoted Tran Thanh Hai, deputy head of the Import and Export Department under the ministry, saying that removing the requirements in Circular 20 will hold back the domestic car manufacturing industry, which has a specific development plan approved by the then Prime Minister Nguyen Tan Dung.

Hai added that in 2018, tariffs on imported cars among Southeast Asian members will be abolished. Should the ministry loosen conditions for car traders, there will be a surge in car imports, which could exacerbate the already serious problems of pollution and traffic congestion.

At the same time, the increase of car imports will drive the country into a trade deficit, and cars are not listed as a top import priority.

“The ministry really wants to help Vietnamese companies resolve their dilemma. However, we can’t just cancel Circular 20 because it would will lead to chaos on the car market,” Hai said.

Local firms cry out

In response to the new draft by the ministry, the Vietnam Chamber of Commerce and Industry claimed that the provisions in Circular 20 have created an unfair advantage for some car importers.

These people often act as middlemen, buying for other firms that wish to import cars into Vietnam. This has distorted the car market and forced customers to pay more for cars.

The Ministry of Justice has also sent a document to the government, voting against Circular 20.

Since the circular came into effect five years ago, the Ministry of Industry and Trade has continued to issue papers allowing car traders to import cars under contracts signed before 2011.

However, one business said that it still has a $6-7 billion deposit “stuck” in the hands of overseas manufacturers. Another complained that authorities only allow them to import the models outlined in contracts signed more than five years ago, which are either no longer in production or outdated. The company added that the ministry, in fact, hasn't helped them at all.


Từ vựng liên quan

Tin tức liên quan

 Mortal shells from war era found at Vietnam construction site
news 29/03/2021

Mortal shells from war era found at Vietnam construction site

news | 146336651

590 pieces of ammunition including mortar shells and rockets found in central Vietnam have been disposed of.

Chinese survey ship leaves Vietnamese waters
news 13/09/2021

Chinese survey ship leaves Vietnamese waters

news | 309726603

A Chinese oil survey vessel and its escorts left Vietnam's exclusive economic zone (EEZ) and continental shelf Thursday after a three-month infringement.

 Hanoians line up at restaurants as authorities ease Covid restrictions
life 14/09/2021

Hanoians line up at restaurants as authorities ease Covid restrictions

trend | 312896617

People living in Long Bien District, one of Hanoi's Covid low-risk areas, queued up to buy takeout foods like sticky rice and pho early Monday morning.

 Train cars from Japan get on HCMC’s first metro track
news 24/03/2021

Train cars from Japan get on HCMC’s first metro track

news | 89546658

Three cars shipped all the way from Japan have been placed on HCMC’s first metro track in an elaborate, meticulous feat of logistics.

 Thailand, not Vietnam, is exporting
business 28/03/2021

Thailand, not Vietnam, is exporting 'pho' to the US

business | 132356660

Vietnamese food businesses have a lot of technology catching up to do in foodstuffs industry, experts say.

 Shippers weather a storm of pandemic challenges
life 14/09/2021

Shippers weather a storm of pandemic challenges

trend | 311406616

Even as they provide the most crucial service of keeping residents supplied with daily essentials, shippers struggle with stress, insecurity and the harassment of frequently changing rules.

Five million Vietnamese workers lose jobs to Covid-19
business 24/08/2021

Five million Vietnamese workers lose jobs to Covid-19

data-speaks | 235926625

The Covid-19 pandemic has cost nearly five million Vietnamese workers their jobs as of mid-April, bringing Q1 employment figures to a 10-year low.

Bird flu returns to Vietnam; outbreaks kill thousands of poultry
news 13/09/2021

Bird flu returns to Vietnam; outbreaks kill thousands of poultry

news | 305106608

Nearly 6,000 chickens have been killed or culled after four months of no reported cases.

Obama’s ‘bun cha’ goes official
travel 20/09/2021

Obama’s ‘bun cha’ goes official

places | 329336617

The ‘bun cha’ combo Obama ordered during his trip in Vietnam has gone down in history, marked by a whole page in the menu of the street food place he dined in.

 Pandemic improves Vietnam
business 28/03/2021

Pandemic improves Vietnam's chance to enter global supply chain: WB

economy | 126566663

The Covid-19 outbreak has created an opportunity for Vietnam to improve its position in the global supply chain, World Bank experts said.

Link Tài Trợ - Sponsored Links

Công Thức Vật Lý
Loading…